UK New Car Market Hits Record High — What It Means for You

The UK new car market is on the rise again, with registrations up 13.7% in September 2025, reaching 312,891 units -the strongest September performance since 2020.

This growth reflects renewed consumer confidence, stronger manufacturer incentives, and the launch of the Electric Car Grant, which has made switching to electric vehicles more affordable than ever.

At Find & Finance, we’re seeing this shift first-hand as more customers explore smarter, cleaner, and more cost-efficient motoring options.

All sectors showed improvement last month: 

• Fleet sales: up 16.9% to 174,336 units
• Private sales: up 8.9% to 131,003 units
• Business sales: up 28.6% to 7,552 units
• Total market: 312,891 vehicles (up from 275,239 in 2024)

Fleet demand continues to lead the way, but private and small business buyers are also returning to the market in strong numbers.

More than half of all new cars registered in September were electrified; -a first for the UK.

Breakdown by powertrain:

• Battery Electric Vehicles (BEVs): 72,779 (+29.1%)
• Plug-in Hybrids (PHEVs): 38,308 (+56.4%)
• Hybrid Electric Vehicles (HEVs): 47,885 (+23.5%) • Petrol: 141,310 (+2.4%)
• Diesel: 12,609 (-28.2%)

EVs are now accounting for over one in five new cars sold this year. The rise has been driven by:

• Wider model choice across all budgets
• Strong manufacturer discounts and dealer incentives
• The Electric Car Grant, which makes qualifying EVs more affordable for everyday drivers

The Bigger Picture

The strong September performance shows the industry is moving in the right direction -but there’s still work to do.

Private EV adoption remains lower than government targets, with fewer than 25% of battery-electric cars being bought by private buyers so far this year. The Electric Car Grant is helping close that gap by making it easier for drivers to make the switch to zero-emission motoring.

As more models enter the market and infrastructure improves, we expect EV ownership to become the new normal in the coming years.

Don’t miss out on future industry updates, vehicle insights, and expert tips designed to help you make smarter motoring decisions. 

Subscribe to the Find & Finance newsletter today.

Got a question? Or if you’d like to discuss any topic covered in this article, our team of automotive specialists would be delighted to hear from you.